Q: I’m in a chapter 13 bankruptcy and the deadline for the creditors to file a proof of claim was 10/5/2023 and gov claim

A: From the facts you provide, it appears that as the Ch. 13 debtor in possession, you/your lawyer can file an Objection to the Proof of Claim. So can the Ch. 13 Trustee, or, alternatively, the 13 Trustee can file a Motion for Authority from the Court to pay Claims, showing the DoE claim as getting nothing because it has been filed out of time. Others, including creditors, have a right to object to the Trustee's Motion, to include their respective claims.

On the other hand, try to be smart about this, and confer with your lawyer about your best strategy. The DoE's claim is probably not dischargeable, meaning it will survive your bankruptcy, so you most probably want it to be paid, at least in part.

A: Your attorney should file an objection to their proof of claim.

A: Since the Department of Education filed their proof of claim in your Chapter 13 bankruptcy case over a month after the January 23, 2024 bar date for government entities, here is what will likely happen:

The claim filed by the Department of Education in February 2023 will almost certainly be disallowed by the Bankruptcy Court as untimely. They have missed the statutory deadline and provided no timely claim or request for an extension.

Specifically, what will likely transpire is:

- Either you or the Chapter 13 trustee can file an objection to the claim asserting that it should be barred for being filed late.

- The court will then examine the facts - the bar date order, the actual filing date, etc.

- Seeing the deadline was clearly missed, the Bankruptcy Judge will in all probability issue an order sustaining the objection and disallowing the Department's claim.

- This means they would lose the ability to collect or enforce debts owed to them through your Chapter 13 case. The late claim will be effectively tossed out and invalidated by the court order.

So in summary - they missed the cutoff date so their claim will almost surely be disallowed and the debt owed to them would likely be discharged at the completion of your Chapter 13 plan. Filing a month late has very serious consequences in bankruptcy. Let your attorney know if they assert the claim and request it be challenged immediately.